Non - Banking Financial

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Capital Market’s contribution to the national economy is clearly shown through its role in encouraging the transfer of accumulated savings to investments in new projects that achieve economic and social development. In addition, the Capital Market with its high technology and legislations has created an attractive investment climate.
The economic reform program has continued to have positive impacts on the non-banking financial sector in general and on the Stock Market in particular. The issuance market has witnessed a remarkable growth in the value of issuances (corporation's share and capital increase shares) where it reached 159.1 billion EGP in 2018 compared to 119.8 billion EGP in 2017 with a growth rate of 33.5%.

 This year 7 securitization bonds were issued with a total value of 5.3 billion EGP compared to five issuances in 2017 with a value of 3 billion EGP at a growth rate of 77%.

Despite the fact that Stock Market indices fell by 13.2% during 2018, the main index EGX30 reached 13035.77. Also, the share capital fell at liquidity level. Whereas, the total trading value increased during 2018 by growth rate of 8% compared to the same period last year. On the other hand, this year witnessed the implementation of four initial proposals worth 5.2 billion pounds with an increase of 25% over last year.

It is worth mentioning that foreign investors’ transactions amounted to 36% of total transactions in 2018. Meanwhile, Egyptian investors’ transactions amounted to 64% (after excluding OPR and bonds).

By the end of 2018, the number of funds operating in Egypt was about 106 investment funds, including one real estate investment trust (REIT). Net assets of investment funds reached 47 billion EGP at the end of 2018 (including the value of private equity funds). It is worth mentioning that funds established by banks represent the largest proportion of total funds, of the 106 funds, 88 were established by Egyptian banks.

Private equity funds invest their funds in listed and unlisted securities and it may engage in venture capital activity. This is an important tool to provide financing for high risk and high value-added projects. By the end of 2018, the number of private equity funds was 6 funds with a total net assets of about 3.3 billion EGP.

In addition, the number of listed shares on the main market reached 9% with an amount of 750 billion EGP compared to 825 billion EGP in the previous year. However, the performance of the Egyptian Stock Exchange is still better compared with the performance of many Stock Exchanges of developed and developing countries.